There are different forms to use when you decide with your Realtor what you’re buying. Depending on if you’re buying a new construction, a rural property or even a bank owned property/repo. Ask your Realtor which one is best for you. The offer is also known as a Contract to Purchase Agreement.

Your Office Price

You’ll want to consider your price carefully. Ask your Realtor all the specific ways to decide how much to offer.

Loan Type

Based on the type of mortgage loan you’re doing whether it be Conventional, FHA, VA, USDARD, the type of loan could affect the seller’s closing costs and the amount of time it takes to your closing.

Typically there is a deposit with your offer called ‘earnest money’. Basically meaning you are sincere and earnest that you are going to go through with the purchase. Sometimes the more you put down with your offer as earnest money the more the seller feels at ease! Usually it is a dollar amount and can range from 1-10% of your offer amount and it is credited to you at your closing. It’s considered a part of your down payment. Your Realtor can give you an idea how much is typical based on the price of the property.

Down Payment

If the seller by chance would receive more than one offer on their home, then they may take into account the size of your down payment, 10% down versus 20% down.

Closing Costs & Prepaids

You can ask the seller to pay for some or all of your closing costs, but your lender could have limits on how much is allowed. Ask your lender what the limit is before you write an offer.


Anything that you add as a contingency could stop the transaction such as a ‘subject to the sale’ of another house. Sellers are skeptical to accept an offer with a ‘subject to’ on the sale of a home, but mostly they would accept a ‘subject to the closing’ of the other home. Meaning if the house closes then they can continue on and purchase another. It can be what they call a ‘domino’ affect where if one falls through then the other will do the same.